Project net operating profit after tax

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Problem: Following is financial information for NetFlix, Inc., for the year ended December 31, 2016 (in thousands). Use the parsimonious method of forecasting to project net operating profit after tax (NOPAT) and net operating assets (NOA) for 2017 through 2020, inclusive.

Sales   $ 8,830,669

Net operating profit after tax (NOPAT) 261,828

Operating assets 11,852,828

Operating liabilities 7,542,499

Assume that net operating profit margin (NOPM) and net operating asset turnover (NOAT) will remain at 2016 levels. Assume that sales will grow at 5% per year.

Required:

Question: Use the parsimonious method of forecasting to project net operating profit after tax (NOPAT) and net operating assets (NOA) for 2014 through 2017, inclusive.

Reference no: EM132418786

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